REIT faces new vote on ouster of board

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An arbitration ruling in a fight between CommonWealth REIT and investors seeking to oust its board deemed the campaign invalid but said that a new vote can proceed. Corvex Management and Related Cos., which this year bought into the REIT, began a drive to remove trustees, alleging conflicts of interest and mismanagement. They claimed support from holders of over 70 percent of the shares. CommonWealth called the vote invalid. Arbitrators said it “was not properly conducted and cannot be validated” but a new effort to remove the board under the panel’s guidelines can proceed. Arbitrators found the REIT’s bylaws “erect a complex wall of procedural hurdles.”